Recently, Overseas Orders Have Been Greatly Reduced, And Vietnam'S Clothing Giant Plans To Allow 50 Thousand Employees To Take Temporary Leave.

Due to the impact of the epidemic on the global economy, enterprises that had previously transferred production lines to Vietnam had to face the risks arising from economic fluctuations. According to the latest report of Nikkei in April 24th, Vietnam's largest state-owned garment enterprise, Vietnam National Textile and Garment Group (Vinatex), is discussing the most temporary leave for 50 thousand employees, and for global clothing enterprises like ZARA, it will face the risk of the basic collapse of the supply chain.

It is understood that despite the resumption of procurement of Chinese fabrics, the epidemic in Europe and America is serious, resulting in a sharp decline in clothing demand. Many Vietnamese garment enterprises either cancel orders or stop directly. Data show that this year, from 4 to May, the order volume of footwear products will drop by at least 70% compared with the same period last year. According to Vinatex, even if the epidemic subsided before May, the loss of the enterprise was close to 1 trillion dong dong (about 310 million yuan), which was 200% of last year's net profit.

Take Nike, a well-known company, for example. After Nike transferred its production line to Vietnam, instead of enjoying Vietnam's processing bonus, it planned to invest 80 million US dollars to build about 120 production lines in Indonesia and Kampuchea, so as to reduce its dependence on Vietnamese market. Another well-known company, UNIQLO, will directly face the risk of Vietnam's supply chain collapse after moving its business model to Vietnam.

In fact, over the past 10 years, the globalization of the clothing industry is mostly concentrated in Asia. If Asian garment factories can not get through this crisis, the purchase of the world's major clothing brands will also be affected. According to H&M and other enterprises, garments that have entered the production process will be purchased according to the terms stipulated in the contract. However, many enterprises have proposed reducing or postponing payment.

Some analysts have pointed out that if these enterprises are concentrated in the Chinese market for procurement, the risks faced by these enterprises will be greatly reduced, because China has become the fastest recovering country in the epidemic. Some foreign companies have recently regrets that compared with imperfect infrastructure in Southeast Asia, the Chinese market is better.